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Please draw the payoff paterrn charts also. 1. Consider the following portfolio: buy a call at the premium V c and buy a Treasury bill
Please draw the payoff paterrn charts also.
1. Consider the following portfolio: buy a call at the premium Vc and buy a Treasury bill having price-per-face of and face of E, where E is the exercise price of the option. Now show how you would short this portfolio. What is the payoff pattern? Explain
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